Title company cancels proceeds cheque. Deducts $10k.

[AZA]

Our home was officially closed on 09/09/22. Our mortgage company lists our mortgage as entirely paid off. Following close, title company contacted my wife and told her that due to their own oversight, they did not account for an additional mortgage loan of $10,000. They demanded that my wife immediately give them back the $10,000 in order to rectify their oversight. I called the title company who admitted fault in their oversight. They even related a recent holiday vacation they took to the cause of the oversight. They however did demand the payment be made to fix their error. I told them at this time there would be no $10,000 payment to the company for the fact that they had closed the house and paid us no less than three hours prior. The title company attorney then called me, explained the same situation as the agent I spoke to at the title company earlier and similarly demanded the title company be paid the $10,000 from the closed home proceeds check. Yesterday I learned that the title company has cancelled the check they have issued in an effort to recoup the $10,000 they had personally overseen. Reflecting on this, it is obvious that the title company made no indication of this loan prior to the sale of the home. The home would not have been sold at the price it was sold at if the additional $10,000 loan, and deduction of proceeds, was listed in the closing contract. As well as the sale of this home, also the purchase of our new home would not have been completed if we had the knowledge of earning $10,000 less than we earned yesterday; a number which was never presented to us at any point along the 4-month road to closing this house and relocating my family due to a re-assignment of military orders. I am respectfully requesting any assistance in this matter. Thank you

 

[adjusterjack]

they did not account for an additional mortgage loan of $10,000.

Why didn't you account for it. Presumably one knows how many loans they have on their house and for how much.

I am respectfully requesting any assistance in this matter.

Assistance for what.

You owed the additional $10,000 to a lender. You would have had to pay it out of your proceeds one way or the other.

The home would not have been sold at the price it was sold at if the additional $10,000 loan, and deduction of proceeds, was listed in the closing contract.

Yes, it would have been sold at the contract price and you would have gotten $10,000 less. If you tried to back out of the deal, you'd be sued.

a number which was never presented to us at any point along the 4-month road to closing this house

One more time. Your own debts shouldn't have to be "pointed out" to you.

I don't see that the escrow did anything wrong in recovering the money they advanced you.

 

[Just Blue]

Our home was officially closed on 09/09/22. Our mortgage company lists our mortgage as entirely paid off. Following close, title company contacted my wife and told her that due to their own oversight, they did not account for an additional mortgage loan of $10,000. They demanded that my wife immediately give them back the $10,000 in order to rectify their oversight. I called the title company who admitted fault in their oversight. They even related a recent holiday vacation they took to the cause of the oversight. They however did demand the payment be made to fix their error. I told them at this time there would be no $10,000 payment to the company for the fact that they had closed the house and paid us no less than three hours prior. The title company attorney then called me, explained the same situation as the agent I spoke to at the title company earlier and similarly demanded the title company be paid the $10,000 from the closed home proceeds check. Yesterday I learned that the title company has cancelled the check they have issued in an effort to recoup the $10,000 they had personally overseen. Reflecting on this, it is obvious that the title company made no indication of this loan prior to the sale of the home. The home would not have been sold at the price it was sold at if the additional $10,000 loan, and deduction of proceeds, was listed in the closing contract. As well as the sale of this home, also the purchase of our new home would not have been completed if we had the knowledge of earning $10,000 less than we earned yesterday; a number which was never presented to us at any point along the 4-month road to closing this house and relocating my family due to a re-assignment of military orders. I am respectfully requesting any assistance in this matter. Thank you

What state?

 

[STEPHAN]

From the facts we have so far, you owe the money. There is nothing you can do about it. You do most likely not get out of the sale.